How bad is the UK economy at the moment?

Question

Today it was announced that the US economy is growing again. Along with the United States, Germany, France, Japan, China, Australia and India are out of recession (technically China and India never were in recession). So basically nearly ever major economy has exited recession apart from the United Kingdom. How far is the British economy falling behind from the rest of the world?

Answer 1

Best Answer - Chosen by Asker

Ask Mr. Brown. We'd all love to know.

Asker's Rating:

Asker's Comment:

I think I might write to him!

Answer 2

lots of businesses are feeling the pinch still although it does seem to slowly be getting better ,I notice it by the lack of advertising in my job down to half what I used to do as firms can't afford to advertise now as they're cutting corners all the time.Aren't we usually behind it's how it seems to me anyway!

Answer 3

That transcript in full:

Banker
****!

Analyst
If I hear the words 'efficiency', 'market', 'buck', 'BCCI' or 'merge' I'm never voting Labour again.

Oil Trader
Peace, Earl Grey, I'm telling you, peace.

Answer 4

Simple answer.
Still in recession.
Brown is in totsal denial.
Real unemployment is about 5 million.
As a country we owe (Government debt PLUS debt for buying hospitals/schools on Hire Purchase (PFI), plus Public Sector pensions) = £2,000.000.000.000
plus consumer personal debt = £1,400.000.000.000
Total about £3.4 trillion.
Which is £200,000 per family PLUS yealry interest of aqbout £70,000.000.000.


Worried? you should be!

Answer 5

Britain's economy is finished. Since the Thatcher years manufacturing industry has gradually evaporated leaving just a financial services industry that has been badly affected by the banking crisis. The U.K.'s
unexplainable reluctance to integrate fully into Europe and the Euro currency means that international companies base themselves on mainland Europe rather than here

Answer 6

We're in this situation because of our dear Prime Minister and the fantastic Labour party. The London markets are flexible and will bounce back fast, but not for a while.

Answer 7

Still in recession and rising unemployment.
As for the US it is only the USG stimulus going into the economy as unemployment is still rising there.

Germany, france and japan are out of the recession because they make things to sell.

China and india were never in a recession really.

Answer 8

Our business is seeing the light at the end of the tunnel. I reckon the economic situation has improved over the last two months.

Once confidence starts to build (and it is), it will gather momentum very quickly.

Answer 9

There have been a number of different opinions and predictions from industry officials in relation to the UK’s economy of late. Most have been relatively gloomy and some have been downright worrying, with many officials expressing concern over how close the nation is of sliding into recession. According to a recent report the UK’s largest employer’s association, the CBI, has stated that the state of the economy is actually worse than most thought.

Officials from the CBI have said that the state of the economy in the UK is deteriorating at a rate that is faster than previously thought. The CBI director general Richard Lambert sent a stark warning in a letter to members, which stated that there was “no doubt that the mood has darkened in the last two or three months.”

He also said that both the CBI and other industry officials had previously been far too optimistic about the forecast for the UK economy.

Growing fears over possible recession in the months to come have been heightened as a result of slow growth and soaring inflation levels. Lambert said that the high rate of inflation, which has hit record highs of 4.4% for July, had taken people by surprise. He also described the global credit crunch, which has been wreaking havoc in the nation’s financial markets since last year, had been bigger and broader than most people had initially anticipated.

Lambert said: “A year ago it seemed reasonable to hope that the worst would be over by now. That has not turned out to be the case.”

Over recent weeks growth forecasts have been cut, economic activity has been slowing, house prices have been falling, business and consumer confidence has fallen, and consumer spending has been affected by tight credit conditions. The CBI has cut its growth forecasts for 2009 from 1% to 0.4%.

Mr Lambert stated: “This is why most analysts are now suggesting that the economy will at best only manage to stagnate in the coming few quarters, and that the growth prospects through 2009 and into 2010 look no better than anaemic.”

He also went on to state: “The CBI, along with most other forecasters, has been consistently over-optimistic about the economic outlook over the last 12 months.”

He added: “A sharp economic slowdown is a new experience for many people in government and in business.”

He did add that despite the doom and gloom of the situation there were still many businesses that were doing well despite economic conditions, but he said that the future did not look all that bright for many others.

In the meantime many industry groups such as the British Chambers of Commerce are continuing to urge the Bank of England to cut interest rates in order to restore consumer confidence and boost the flagging economy. However, with inflation at such high levels the Bank of England faces a very difficult time in terms of setting the base rate as a result of stagflation.

Answer 10

Not as bad as the Tory press would have us believe.